Financial news
HSBC shares tumble
After a quiet start to the week, considerable selling activity re-emerged on the local equity market. A downbeat session was propelled by a further drop in HSBC Bank Malta shares, which are now trading near this year's low.
HSBC shares tumbled 1.6 per cent or 3c, following the exchange of over 101,000 shares across 61 deals. Yesterday's drop equates to a loss of Lm8,755,200 in market capitalisation, as the share closed at Lm1.85, 1c shy of this year's low.
Even higher losses were registered in International Hotel Investments following the execution of a single deal at the €1.12 level, 2.61 per cent lower than Monday's closing price. At the end of the session an evident wide spread between the bids and offers was present, as 5,300 shares stood on the bid side at €0.96 against an offer of 1,611 shares at €1.139.
A similar lonely deal in Maltacom shares propelled a drop in the telecommunication company shares, as the exchange of 500 shares trimmed half a cent from the equity's previous closing, to see the day off at Lm1.49. When the session terminated, a further 227 shares remained outstanding on the bid side at Lm1.49, against demand for 100 shares at Lm1.498.
Elsewhere in the regular market a subdued number of shares traded in Bank of Valletta, FIMBank and Malta International Airport had no monetary impact on the equities' previous closing prices of Lm3.57, $1.95 and Lm1.36, respectively.
European stocks fall
European equities fell as signs of robust economic growth in the eurozone and UK lifted concerns over inflation and rising interest rates. By midday, the FTSE Eurofirst 300 index was down 0.4 per cent, Frankfurt's Xetra Dax shed 0.5 per cent and the CAC 40 in Paris lost 0.6 per cent.
Investors took profits in UK stocks as a sharp rise in inflation raised the prospect of a May interest rate rise. News from the Office of National Statistics that inflation had jumped to 3.1 per cent - from 2.8 per cent in February - forced the governor of the Bank of England to write a letter to the chancellor explaining why inflation was ahead of the government target of two per cent. The FTSE 100, which hit a six-and-a-half-year high in the previous session, eased 45.7 points to 6,470.5 in a broad-based decline. The FTSE 250 slumped 133.1 points to 11,882.1.
The Japanese stock market fell in the afternoon on pessimism about corporate earnings despite continuing yen weakness.
US stock-index futures dropped before a report that may show consumer prices rose the most in almost a year, giving the Federal Reserve less leeway to lower interest rates.
The financial news was compiled by Valletta Fund Management (Tel. 8007 2344) and Bank of Valletta plc (Tel. 2131 2020). BOV and VFM are licensed by the MFSA to conduct investment services business.